- What is a Federal Direct Subsidized Loan?
- What is a Federal Direct Unsubsidized Loan?
- What are the loan limits?
- Do these loans have origination fees?
- What are the interest rates?
The Federal Direct Subsidized Stafford Loan is a need-based student loan that does not require a credit check. As long as you are enrolled at least half-time, the interest is paid by the Federal Government. For Subsidized Loans first disbursed prior to July 1, 2012, the government also pays the interest during the six-month grace period. Repayment of the loan begins six months after you cease half-time enrollment.
What is a Federal Direct Unsubsidized loan?
The Federal Direct Unsubsidized Stafford loan is not need-based and does not require a credit check. It is intended to help students who do not qualify for need-based aid or for whom need-based aid is not sufficient to meet their educational expenses. For this loan, the interest begins to accrue immediately upon disbursement. You are able to delay making payments on the loan as long as you are enrolled at least half-time. Repayment on the loan begins six months after you cease half-time enrollment.
What are the loan limits?
Year |
Dependent Undergraduate Student (except students whose parents are unable to obtain PLUS Loans) |
Independent Undergraduate Student (and dependent students whose parents are unable to obtain PLUS Loans) |
Graduate and Professional Degree Student |
Freshman |
$5,500 - No more than $3,500 of this amount may be in subsidized loans. |
$9,500 - No more than $3,500 of this amount may be in subsidized loans. |
$20,500 |
Sophomore |
$6,500 - No more than $4,500 of this amount may be in subsidized loans. |
$10,500 - No more than $4,500 of this amount may be in subsidized loans. |
|
Junior/Senior |
$7,500 - No more than $5,500 of this amount may be in subsidized loans. |
$12,500 - No more than $5,500 of this amount may be in subsidized loans. |
|
Maximum total debt from Stafford Loans when you graduate (aggregate loan limits) |
$31,000 - No more than $23,000 of this amount may be in subsidized loans. |
$57,500 - No more than $23,000 of this amount may be in subsidized loans. |
$138,500 - No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes Stafford Loans received for undergraduate study. |
Do these loans have origination fees?
Yes, there is a loan origination fee that is deducted from Subsidized/Unsubsidized loans before they are disbursed. The fee is 1.062% for loans first disbursed prior to October 1, 2019, and 1.059% for loans first disbursed on or after October 1, 2019.
Interest rates on Direct Loans disbursed on or after July 1, 2019 have been set.
Undergraduate Direct Subsidized and Unsubsidized interest rates are set at 4.53%
Graduate Direct Unsubsizided loans are fixed at 6.08%.